Previously, the company had announced plans to reduce itsplanned store growth from 8% long term to 5% by fiscal 2001. Thatnow has been reduced further to a projected 2.5% to 3% by 2011.

|

"The biggest reason for the change is that the economy continuesto shift and change," said Wade D. Miquelon, chief financialofficer. "We may so more consolidation, so this gives us moreflexibility. This is the single biggest value creation lever we canpull."

|

The company will expand between 4% and 4.5% in 2010. In the lastquarter, the company had opened 212 new units.

|

"We will continue to open new stores on the best corners and inthe markets with the best returns," said Gregory D. Wasson,president and chief operating officer. "We're going to continue toinvest, and find markets that make sense strategically."

|

The move will save an additional $500 million in capitalexpenditures, some of which will be allocated to refreshingexisting stores, including creating new merchandisepresentations.

|

What will continue to expand is its Take Care Clinics andworksite health centers, which now total 661, and will have 800locations by year-end.

|

Sales for the quarter rose 6.6% from the previous year to arecord $14.9 billion, with comparable stores rising 1.7% in thequarter. Perhaps not surprisingly in the current economy,prescription sales rose 6.2%. Net earnings were $408 million, down10.4% from last year.

|

Walgreens operates 7,035 locations (which includes 6,500 drugstores) in 49 states, the District of Columbia and Puerto Rico.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.